ERP Outsourcing: Build vs Buy vs Hybrid Staffing Decision Guide

December 5, 2025
Two men in suits discuss ERP outsourcing options at a table with a laptop open between them.

Companies that outsource ERP operations reduce total cost by 35-50% while gaining access to specialist expertise typically requiring 2-3 year hiring processes. 

This isn't just about cutting costs. It's about making a strategic choice on how to source the capabilities your business needs to run effectively.

The question isn't whether your ERP system needs ongoing support. It does. 

The question is how you get that support: build an internal team, outsource completely, or create a hybrid model that combines both approaches.

Each path has distinct trade-offs in cost, control, expertise, and scalability. 

The right choice depends on your company size, ERP complexity, growth trajectory, and how critical your ERP is to daily operations. 

Get this decision wrong and you'll either overspend on capabilities you don't fully use or underinvest in the expertise needed to keep your system running smoothly.

This is a strategic sourcing decision that shapes your operational efficiency and competitive position for years to come.

ERP Capability Sourcing Options

Your ERP system needs consistent attention across multiple functions: accounting operations, system administration, technical maintenance, and sometimes custom development. How you source these capabilities fundamentally shapes your costs, flexibility, and outcomes.

Here are four distinct models, each suited to different business profiles.

Full internal team model

Building a dedicated internal team means hiring across all ERP functions. You need accounting staff who know the system, administrators who configure and maintain it, and potentially developers who customize it.

  • Total annual investment: $400K-$800K+ per year
  • Control: Highest, but most resource-intensive
  • Expertise: Variable, depends entirely on hiring success
  • Scalability: Difficult. Hiring cycles take months, onboarding takes longer.
  • Retention risk: High. ERP specialists get recruited aggressively by competitors.

This model works best for very large companies (500+ employees) with mission-critical systems requiring instant response, highly complex ERP environments with significant customization, and stable, predictable ERP needs.

The challenges are real:

  • Recruiting top ERP talent takes 2-3 months per position.
  • Turnover costs range from 50-200% of annual salary when you factor in recruiting fees, onboarding, productivity loss, and knowledge transfer. 
  • Continuous training is required as platforms update and release new features.
  • Knowledge silos develop when specific people become the only ones who understand certain processes. 
  • Downtime during recruitment or transition periods can cripple operations.

Hybrid model (Core + Outsource)

The hybrid approach retains 1-2 senior people internally for strategy and oversight, then outsources specialized functions like administration, maintenance, and development work.

  • Total annual investment: $250K-$400K
  • Control: Medium. Strategic decisions stay internal, execution gets outsourced.
  • Expertise: High. You combine internal knowledge with external specialization.
  • Scalability: Good. Flexible outsourcing engagement scales with needs.
  • Retention risk: Lower. You don't need to retain all specialists.

This model suits growing companies (50-250 employees), businesses with balanced needs for control and cost efficiency, multiple ERP instances or complex environments, and companies wanting in-house strategic capability without full operational burden.

The benefits are compelling:

  • Your internal team focuses on strategy and optimization. 
  • The outsourced team handles 24/7 operations and technical work. 
  • Risk gets distributed across multiple people and organizations. 
  • You gain flexibility to scale up or down based on actual needs.

Full outsourcing model

End-to-end ERP operations management by a specialist firm means the vendor handles all ongoing work: accounting operations, system administration, technical maintenance, performance tuning, and often development.

  • Total annual investment: $150K-$300K
  • Control: Lower. The outsourced company manages day-to-day operations.
  • Expertise: High. Deep specialization from firms that do nothing but ERP work.
  • Scalability: Excellent. Engagement scales seamlessly with business needs.
  • Retention risk: None. No internal ERP staff to lose.

Best for small to medium companies (under 200 employees), organizations with limited internal ERP expertise, budget-conscious operations with growing ERP needs, and companies preferring to focus on their core business rather than IT operations.

The advantages are straightforward:

  • Lowest total cost of all models. 
  • Quick capability access without lengthy hiring processes. 
  • SLA-backed performance guarantees that 62% of companies now expect from managed services providers. 
  • 24/7 support and monitoring that internal teams struggle to match.

Project-based model

Bring in external expertise for specific implementation or optimization projects rather than ongoing operations. 

This works for ERP implementations, major system upgrades, specific technical needs like integrations or customizations, and one-time optimization initiatives.

  • Total cost: $50K-$200K per project
  • Control: High. Your team leads, experts advise and assist.
  • Expertise: Very high. Best-practice experts for specific challenges.
  • Scalability: Not applicable for ongoing operations.

This isn't a replacement for ongoing operations support. It's a way to access specialized expertise for defined initiatives without committing to long-term relationships.

Comparing the models

Here's how these approaches stack up across key dimensions:

Blog Table
Model
Annual cost
Expertise
Control
Scalability
Retention risk
Full Internal
$400K-$800K
Variable
Highest
Difficult
High
Hybrid
$250K-$400K
High
Medium
Good
Medium
Full Outsource
$150K-$300K
High
Lower
Excellent
None
Project-Based
$50K-$200K
Very High
High
N/A
N/A

The control question

"Outsourcing means losing control" is the most common objection. It's worth examining closely.

  • Control mechanisms exist in well-structured outsourcing relationships. 
  • SLA-backed performance guarantees specify response times, resolution times, and uptime commitments with financial penalties if targets aren't met. 
  • Regular communication and reporting keeps you informed of all activities and issues. 
  • Escalation procedures ensure critical issues get immediate attention. 
  • Oversight frameworks let you maintain strategic direction even while execution happens elsewhere.

The real question isn't whether you have control. 

It's whether the control you gain through internal teams outweighs the cost, complexity, and retention risks that come with it.

The Total Cost of ERP Operations

Understanding the full cost of building an internal ERP team requires looking beyond base salaries. The total investment includes compensation, training, tools, turnover, and opportunity costs that are easy to miss when making the build vs. buy decision.

Salaries and benefits

Base salaries for ERP roles vary significantly by function and experience. 

  • ERP Accountants with 2-5 years of experience command $68K-$130K annually in the US. 
  • ERP Administrators range from $95K-$130K. 
  • System Analysts and Developers earn $100K-$150K. 
  • Managers overseeing ERP teams (typically 1 per 2-3 staff) cost $120K-$180K.

Benefits add 30-35% on top of base salaries. This includes health insurance, retirement contributions, payroll taxes, paid time off, and other standard benefits.

For a team of three people, the numbers look like this:

  • Base salaries: $300K-$380K Benefits (33%): $100K-$125K 
  • Subtotal: $400K-$505K

Training and certifications

ERP platforms update constantly. New features, changed functionality, revised best practices. Your team needs ongoing training to stay current.

  • Platform certification courses: $2K-$5K per person annually 
  • Continuing education: $1K-$3K per person 
  • Conferences and industry events: $2K-$5K per person 
  • Software licenses for learning environments: $500-$1K per person

Annual training cost per team: $10K-$20K+

Tools and infrastructure

Beyond the ERP licensing itself, your internal team needs tools to do their work effectively.

  • ERP licensing (per-user costs): Variable by platform 
  • Monitoring and management tools: $3K-$10K annually 
  • Development and testing environments: $2K-$8K annually 
  • Collaboration and documentation tools: $1K-$3K annually

Turnover costs

When someone leaves your ERP team, the costs extend far beyond the salary of the vacant position.

  • Employee turnover costs include recruiting fees (typically 20-30% of salary, or $25K-$40K for ERP roles) 
  • Onboarding and training for 3-6 months ($15K-$30K)
  • Productivity loss during ramp-up ($20K-$40K)
  • Lost knowledge requiring re-documentation ($10K-$20K).

Total per departure: $70K-$130K

This happens more often than you'd like. ERP specialists are in high demand. Competitors recruit them aggressively. 

Burnout is common in small ERP teams that can't distribute on-call responsibilities.

Opportunity cost

This is the hardest cost to quantify but often the largest. When your internal ERP team spends time firefighting issues, they're not working on strategic improvements.

  • Time spent on firefighting vs. strategic work reduces the overall value your team creates.
  • Deferred optimization and improvements mean you're not getting full value from your ERP investment.
  • Manual processes that could be automated continue eating time. 
  • Limited bandwidth for innovation means you miss opportunities to improve operations.

Estimated value of lost opportunity: $50K-$150K annually

Build vs. Buy: Real Numbers

Let's look at two scenarios to make this concrete.

Scenario 1: $50M Revenue Company

Internal Team (1 Accountant + 1 Administrator):

  • Salaries: $200K-$220K
  • Benefits: $65K-$75K
  • Training: $5K-$8K
  • Tools: $3K-$5K
  • Turnover reserve (50% probability): $25K
  • Total: ~$300K-$333K annually

Outsourced Model (2 dedicated resources):

  • Monthly retainer: $12K-$15K
  • Total: ~$144K-$180K annually

Savings: $120K-$189K annually (40-60% reduction)

Scenario 2: $150M Revenue Company

Internal Team (1 Accountant + 1 Administrator + 1 Manager):

  • Salaries: $380K-$450K
  • Benefits: $125K-$150K
  • Training: $8K-$12K
  • Tools: $5K-$8K
  • Turnover reserve (higher likelihood): $40K
  • Total: ~$558K-$660K annually

Outsourced Model (4-5 dedicated resources):

  • Monthly retainer: $25K-$30K
  • Total: ~$300K-$360K annually

Savings: $198K-$360K annually (35-55% reduction)

Even at the highest end of offshore salary ranges, companies achieve 70-90% cost savings compared to US-based hiring. 

The cost advantage compounds when you factor in the elimination of turnover costs, training expenses, and opportunity costs from limited bandwidth.

Expertise Access and Capability Depth

Cost savings matter, but expertise access often matters more. 

The depth and breadth of knowledge required to run ERP systems effectively goes far beyond what most companies can build internally.

Platform expertise

True ERP platform expertise takes years to develop. NetSuite, SAP, Oracle, Microsoft Dynamics each have their own technical architecture, configuration approaches, and best practices.

Developing expert-level knowledge typically takes 2-3 years: 

  • Year 1 for learning basics and platform navigation
  • Year 2 for handling complex scenarios and troubleshooting
  • Year 3 for strategic guidance and optimization.

You need people who understand the platform at a deep technical level. 

  • Years of specialized experience with your specific ERP system. 
  • Current certifications (NetSuite, SAP, Oracle credentials that require ongoing renewal).
  • Module specialization across Financials, Supply Chain, HCM, and other areas.
  • Knowledge of edge cases and workarounds that only come from repeated exposure.

The challenge is competing for limited talent. There aren't enough experienced ERP specialists to meet demand. 

Companies compete aggressively for the same people. Compensation keeps rising. Retention becomes a constant battle.

Industry-specific knowledge

Different industries have fundamentally different ERP requirements. 

  • Manufacturing needs complex costing models and multi-level bills of materials.
  • Professional services requires project accounting and revenue recognition. 
  • Nonprofits need fund accounting and grant management. 
  • Retail depends on multi-location inventory and promotional accounting.

Generic ERP knowledge isn't enough. You need people who understand how your industry uses the platform, what configurations work best, and what pitfalls to avoid.

Regulatory knowledge

Compliance requirements change constantly. 

  • Tax tables update quarterly or more. 
  • Regulatory standards like SOX, GDPR, and HIPAA evolve. 
  • Audit requirements shift. 
  • Industry-specific regulations get added or modified.

Someone needs to track these changes and update your ERP configuration accordingly. Miss an update and you're out of compliance. Fall behind on tax tables and you're reporting incorrectly.

This requires dedicated attention that small internal teams struggle to provide while also handling daily operations.

Integration expertise

Your ERP doesn't exist in isolation. It connects to CRM systems, HR platforms, ecommerce sites, warehouse management systems, payment processors, and often a dozen other applications.

These integrations require specialized knowledge: 

  • Middleware configuration and troubleshooting
  • API development and integration patterns
  • Data sync and validation procedures
  • Error handling and retry logic
  • Custom development for unique requirements.

Integration capabilities significantly impact IT outsourcing performance. Companies with strong external integration capabilities see improved vendor performance and project outcomes.

Each integration is different. Each requires testing when either system updates. Each can break in subtle ways that take expertise to diagnose and fix.

Performance optimization

ERP systems slow down over time without active maintenance. 

  • Database indexes need tuning. 
  • Reports need optimization. 
  • Batch jobs need adjustment. 
  • System configuration needs review as data volumes grow.

This requires specialized database skills, understanding of the ERP platform's architecture, knowledge of what optimizations are safe and effective, and experience with capacity planning for growth.

Internal generalists rarely have this depth of knowledge. They can keep things running but miss opportunities for significant performance improvements.

Best practices and innovation

Companies with internal-only teams learn from their own experience. Companies that outsource learn from dozens or hundreds of implementations across multiple industries.

  • Process expertise ranks as the top reason (26%) companies choose managed services providers, ahead of even technology platforms (12%). 
  • Industry expertise (24%) comes second, reflecting the value of accumulated knowledge.

External providers bring proven methodologies from wide experience:

  • They identify automation opportunities you'd never notice. 
  • They share process improvement practices that work across different environments.
  • They bring lessons learned from other clients. 
  • They adopt platform updates and new features faster because they see them across multiple implementations.

Capability depth vs. cost trade-off

Here's the fundamental tension:

Internal generalist approach:

  • Lower per-hour cost (salaried employee)
  • Lower expertise depth (limited specialization)
  • Limited availability (other projects compete for time)
  • Reactive rather than proactive approach
  • Long learning curve for new challenges

Outsourced specialist approach:

  • Higher per-hour cost (market rates for specialists)
  • Deep expertise (focused specialization)
  • Dedicated availability (committed resources)
  • Proactive and preventive approach
  • Immediate capability for new challenges

The question isn't which costs less per hour. It's which delivers better outcomes for your total investment.

Strategic Advantages of Outsourcing

Cost savings get the attention, but operational benefits often deliver more value over time. Outsourcing ERP operations creates strategic advantages that internal teams struggle to match.

Scalability and flexibility

Business needs change constantly. Outsourcing scales naturally with these changes:

  • Need more support during an implementation? Add resources for three months without hiring
  • Hit a slow period? Scale back temporarily without layoffs
  • Planning a major upgrade? Bring in specialized expertise for the project without permanent headcount

Internal teams can't flex this way:

  • Hiring takes 2-3 months
  • Onboarding takes another 2-3 months before new hires contribute meaningfully
  • Terminations involve severance costs, unemployment insurance increases, and potential legal exposure
  • You're locked into your team size regardless of actual needs

Example: A growing company reaches capacity during an ERP implementation. The internal team can't handle both daily operations and implementation work. 

Outsourcing operations during the implementation lets internal staff focus on the strategic work, then scale back after go-live.

Focus and Productivity

Internal teams spend most of their time on operational necessities:

  • Daily accounting close
  • User support tickets
  • System issues
  • Performance problems
  • Security patches

This reactive work fills the calendar.

Strategic initiatives get deferred. Process improvements wait. Automation opportunities go unexplored.

Outsourcing operational work frees internal staff for strategic initiatives:

  • Time spent on strategic work can increase from 20% to 60%+ when operations get handed off.
  • Internal staff focus on forecasting, process improvement, and business analysis.
  • Less time on password resets and batch job monitoring.

Risk mitigation

Knowledge concentration is dangerous. When one person is the only one who knows critical processes, vacation becomes stressful, illness creates emergencies, resignation creates crisis.

Outsourcing distributes knowledge across a team:

  • No single point of failure
  • Immediate coverage if primary resources are unavailable
  • Succession planning built into the engagement
  • SLA-backed performance guarantees with financial consequences for missed commitments
  • Vendors carry liability insurance for errors and issues

Continuous improvement

Internal teams learn from their own experience. Outsourcing providers learn from dozens or hundreds of clients.

You get access to accumulated knowledge:

  • Exposure to innovations from serving multiple clients
  • Best practices shared across customer base
  • Early access to platform updates and new features
  • Optimization recommendations based on comparative analysis
  • Proven solutions to common problems

24/7 support

Most internal IT teams work business hours. On-call rotation spreads thin across small teams. Coverage gaps exist during nights, weekends, and holidays.

Outsourcing providers offer true 24/7 availability:

  • Global coverage for global operations
  • Incident response outside business hours as standard practice
  • Escalation paths for critical issues
  • Around-the-clock monitoring and alerting that catches problems before they impact operations

SLA commitments

Managed services engagements include contractual performance guarantees:

  • Uptime targets (often 99.5% or higher)
  • Response time commitments (1 hour for critical issues)
  • Resolution time targets
  • Financial penalties if SLAs aren't met

Internal teams have no such accountability mechanism. You can't penalize your own employees for missed service levels. 

62% of companies see managed services as clearly distinct from traditional outsourcing specifically because of these performance-based commitments.

Outsourcing Implementation Models

Not all outsourcing engagements look the same. Different models suit different needs, budgets, and preferences for how you want the relationship to work.

Dedicated resource model

One or more full-time equivalents allocated exclusively to your operations. 

They work only on your systems. You interact with them as if they were internal employees. Monthly retainer provides fixed cost regardless of hours used.

  • Cost: $12K-$20K per month per FTE
  • Best for: $50M-$300M revenue companies with moderate complexity

This feels closest to having internal staff:

  • You build relationships with specific people. 
  • They learn your business deeply. 
  • Communication happens naturally without formal ticketing systems.

The dedicated resource model works well when you need consistent, ongoing support and want to avoid the feeling of working with a vendor. 

The resources integrate with your team, attend your meetings, and become part of your operations.

Managed services model

Monthly management fee covering defined scope. Shared pool of resources rather than dedicated individuals. Performance measured against SLAs. Services scale by adding or removing scope items.

  • Cost: $5K-$15K per month for defined scope
  • Best for: Smaller companies (under $100M revenue) or specific services

This works when you need specific services handled well without caring who specifically does the work.

  • You define what needs to happen. 
  • The provider ensures it happens. 
  • You measure against SLAs rather than managing individual resources.

Managed services engagements often cover specific areas like accounting operations, system administration, or technical maintenance while leaving other functions internal.

Time & materials model

Hourly services for specific projects or peak periods. Pay only for actual hours used. No monthly commitment. Maximum flexibility.

  • Cost: $150-$300 per hour depending on expertise level
  • Best for: One-time projects or peak period overflow

This suits occasional needs rather than ongoing operations.

  • Major upgrades
  • One-time optimizations
  • Temporary capacity during implementations
  • Project-based work with defined start and end dates

The lack of monthly commitment means you pay only when you need help. The higher hourly rate reflects the lack of ongoing relationship and revenue predictability for the provider.

Hybrid model

Permanent internal staff handle core strategic functions. Outsourced resources cover overflow work, peak periods, specialized projects, and operational execution.

  • Cost: Internal cost + outsourced overflow ($10K-$30K per month total)
  • Best for: $100M-$500M revenue companies in transition

This balances control with flexibility.

  • Internal staff maintain strategic direction, business knowledge, and oversight. 
  • External resources provide depth, specialization, and scalability.

Many companies start here when transitioning from fully internal to outsourced models. It provides a way to test outsourcing relationships while maintaining internal capabilities.

Evaluation framework for selecting outsourcing partners

Choosing the right provider matters as much as choosing the right model. Several factors determine whether an engagement succeeds.

Platform expertise and client references:

  • How many years of experience with your specific ERP platform?
  • What certifications and training credentials do they maintain?
  • Can they provide 3-5 client references from similar-sized companies in similar industries?
  • What's their track record with successful implementations?

Response time and SLA commitments:

  • What response time do they guarantee for critical incidents?
  • Normal request turnaround time?
  • Availability hours and escalation procedures?
  • What are the consequences if they miss SLA targets?

Scalability and resource availability:

  • Can they scale with your growth?
  • How many available resources do they have?
  • How quickly can they add resources if needed?
  • What's their contingency plan if your primary resource becomes unavailable?

Knowledge transfer and documentation practices:

  • How do they document knowledge and processes?
  • What's their knowledge transfer plan if you need to change providers?
  • What training do they provide to internal team members?
  • Who owns system documentation?

Pricing structure and cost transparency:

  • Is the pricing model clear and straightforward?
  • What's included vs. out-of-scope?
  • How do costs scale as your business grows?
  • Are there surprise charges or hidden fees?

Cultural fit and communication style:

  • What's their communication frequency and protocol?
  • How responsive are they to inquiries?
  • What's their approach to problem-solving?
  • Do they collaborate well or dictate solutions?

Integration with internal team and systems:

  • How will they work with your existing IT team?
  • What technology platforms do they use?
  • How do they integrate with your change management processes?
  • What are the escalation and decision-making procedures?

Implementation approach for outsourcing transition

Transitioning to outsourced ERP operations requires careful planning and execution. A structured approach minimizes risk and disruption.


Phase 1: Assessment and Gap Identification (4-6 weeks)

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Phase 2: Knowledge Transfer and Documentation (8-12 weeks)

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Phase 3: Transition and Parallel Runs (4-6 weeks)

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Phase 4: Full Handoff with Stabilization Support (4-8 weeks)

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The entire transition typically takes 20-32 weeks from start to full operational handoff. Rushing this process increases risk. Taking time to do it right ensures smooth operations and builds confidence in the relationship.

Build vs. Buy vs. Hybrid Decision Framework

The right sourcing model depends on your specific situation. Several factors determine which approach makes most sense for your business.

When to build (Full internal)

Building a full internal team makes sense when your scale, complexity, and strategic needs justify the investment. This approach works best in specific circumstances.

Best for:

  • Very large companies (500+ employees)
  • Mission-critical systems requiring instant response
  • Highly unique ERP requirements
  • Strategic importance to competitive advantage
  • Significant internal IT infrastructure already in place
  • Sufficient talent availability in your local market

When to buy (Full outsource)

Full outsourcing delivers the most value when you need expertise without the overhead of building and managing a team. Smaller companies with limited internal resources benefit most from this approach.

Best for:

  • Small to medium companies (under 200 employees)
  • Limited internal ERP expertise
  • Budget-conscious approaches favoring operational expenses
  • Non-mission-critical systems
  • Operational focus over IT operations
  • Flexible scalability needs

When to hybrid (Core + outsource)

The hybrid model balances strategic control with operational flexibility. It's ideal for companies that need some internal capability but can't justify or manage full operational teams.

Best for:

  • Growing companies (50-250 employees)
  • Need for strategic internal capability without full operational teams
  • Mission-critical systems with multiple instances
  • Future scaling plans requiring flexibility
  • Balance between control and cost efficiency

Decision factors to evaluate

Beyond company size, several dimensions influence which model works best for your situation. Here's how to evaluate each factor.

Company size and ERP complexity:

The scale and complexity of your ERP environment naturally point toward certain models.

  • Larger companies → typically build internal teams
  • Smaller companies → typically outsource
  • More complex environments → favor outsourcing specialists
  • Single simple instances → work with either approach

System criticality to business:

How essential your ERP is to daily operations determines how much control you need.

  • Mission-critical needing immediate response → internal teams or hybrid
  • Non-critical with acceptable planned downtime → outsource
  • Multiple instances with varying criticality → hybrid

Available budget and Capex vs. Opex preference:

Your budget constraints and accounting preferences shape the financial viability of each model.

  • Limited budgets → favor outsourcing (lower upfront investment)
  • Capex-favorable accounting → may prefer internal teams (employees on books)
  • Opex-favorable accounting → suits outsourcing (monthly fees)
  • Companies report 35-50% cost reduction through outsourcing even when accounting for all costs

Existing IT staff and expertise:

Your current internal capabilities influence how much you can realistically build.

  • Strong IT teams → can build or hybrid
  • Weak IT teams → should outsource
  • Distributed IT capability → works well with hybrid

Growth trajectory and flexibility needs:

How fast you're growing and how predictable your needs are determine which model can scale with you.

  • Rapid growth → favors outsourcing or hybrid (scales easily)
  • Stable size → suits internal teams (commitment justified)
  • Unpredictable changes → requires outsourcing flexibility

Regulatory/compliance requirements:

Heavy compliance environments often require more control than full outsourcing provides.

  • Heavy compliance (financial services, healthcare) → often prefer internal or hybrid for greater control
  • Light compliance → works fine with outsourcing
  • Provider certifications (SOC 2, ISO) → matter for regulated industries

Worked example decision trees

Real-world examples make these frameworks concrete. Here are three scenarios showing how different factors lead to different recommendations.

Scenario 1: $50M Revenue manufacturing company

This company has high complexity and criticality but limited internal expertise.

  • Growth: Moderate and steady
  • ERP complexity: High (multi-plant, complex costing)
  • Criticality: High (order-to-cash dependent)
  • Staff: Limited IT expertise

→ Recommendation: Hybrid model (core team + outsourced operations)

The complexity and criticality justify some internal strategic capability. 

  • Limited internal expertise means building a full team is risky. 
  • Stable growth makes the hybrid investment predictable. 
  • Outsourcing handles technical depth while internal team manages business alignment.

Scenario 2: $20M Revenue SaaS company

This company is growing rapidly with a straightforward ERP setup.

  • Growth: Rapid (scaling 40%+ annually)
  • ERP complexity: Low (standard NetSuite)
  • Criticality: Medium (financial reporting, not order-to-cash)
  • Staff: Focused on product development

→ Recommendation: Full outsource (cost-efficient, scalable)

The company can't afford to divert internal resources to ERP management. 

  • Rapid growth requires scalability that internal teams can't match. 
  • Standard configuration means outsourcing providers have relevant expertise. 
  • Medium criticality tolerates the control trade-off.

Scenario 3: $200M+ Revenue financial services

This large company has complex compliance needs and substantial internal resources.

  • Growth: Stable (mature market)
  • ERP complexity: Very high (regulatory, multiple systems)
  • Criticality: Critical (regulatory compliance, 24/7 operations)
  • Staff: Substantial IT organization

→ Recommendation: Hybrid or build (mission-critical justifies investment)

The scale supports dedicated internal teams. 

  • Critical compliance needs require tight control. 
  • Substantial IT organization can manage full internal model. 
  • Very high complexity benefits from both internal strategic knowledge and external specialized expertise in hybrid approach.

Build the ERP Operations Model Your Business Needs

Your ERP operations model shapes your costs, capabilities, and competitive position for years. 

The decision between building internal teams, outsourcing completely, or creating a hybrid approach isn't one-size-fits-all.

  • Consider your company size, ERP complexity, growth trajectory, and budget constraints.
  • Factor in your need for control against your ability to attract and retain specialized talent.
  • Weigh the 35-50% cost reduction of outsourcing against the strategic value of internal capabilities.

Many companies benefit from starting with an assessment of their current state and future needs. 

Understanding where you are today, where gaps exist, and what model best serves your business goals provides clarity for this strategic decision.

Schedule a 30-minute ERP operations assessment to review your current practices, identify capability gaps, and see how offshore ERP administration can deliver specialized expertise at 55% lower cost than US-based hiring.

Your ERP operations are too important to approach casually. Make the decision based on what actually works for your business.

Hiring Method
Best for
Pros
Cons
Full-time hire
Cost-effective Full-time hirefor skilled talent
Deep business knowledge, immediate availability
High cost, difficult to find skilled talent
Contract/Freelancer
Short-term projects, NetSuite implementation expert work
Lower cost, quick turnaround
Limited availability, potential security risks
Offhsore Staffing Partner
Fast hiring, pre-vetted candidates
Access to top talent reduced hiring risk
Higher upfront cost, less control over selection

Frequently Asked Questions

Graphic image of a Compare NetSuite ERP talent salaries preview
SALARY GUIDE EBOOK

Compare NetSuite ERP talent salaries

Attracting top NetSuite talent with clear job descriptions is the first step. Understanding salaries is your next key move! Download this free salary guide to view talent costs, offshore hiring tips, and more

View More Blogs